The chart illustrates the fluctuations of average house prices in 5 different cities in Europe and The United States over a 12 years period ( 1990-2002) compared to the average house prices in 1989.

It can be clearly seen on the graph that in the early 1990s, The average house prices in three out of five cities decreased significantly with -5% in New York and about -7.5 % in both Tokyo and London while the other two cities witnessed slightly increases in the residence costs with around 2% in Madrid and 2.5% in Frankfurt.

Looking at the other side of the Graph, from 1996 to 2002, there were substantial reverses in the average house prices in most of the aforementioned cities with the highest increase of 11.5% reported in London. These prices in New York and Madrid also climbed up with 5 and 4.5 percent respectively. the average house prices in Frankfurt, however, fell slightly to 2% but still remained above the 1989’s mark while the only city in which the house expenses was bellow this reference was Tokyo with -5%.

In the overall view, the average house prices in most of the cities have a tendency to decrease in the first half of the period and increase in the other. This probably due to the effect of the growing population in big cities and the development of construction and facilities in each house.